Paris as It Was and as It Is Part 27

This paper is thus denominated from its having been issued for the purpose of reimbursing the fourth of the dividend of the fifth and sixth years of the Republic (1797 to 1798). It is generally thought that this very sacred claim on the government will be funded _in toto_.

RACHATS DE RENTE,

Is the name given to the redemption of perpetual annuities due by individuals to the government, on a privileged mortgage on landed estates; the said annuities having been issued by the government in times of great distress, for the purpose of supplying immediate and urgent events.

This paper is not only a mere government security, but is also specially mortgaged on the estates of the person who owes the annuity to the government, and who is, at any time, at liberty to redeem it at from twenty to twenty-five years purchase. Claims of this description, mortgaged on most desirable estates near the metropolis, might be obtained for less than 60 per cent; which, at the interest of five per cent, and with the additional advantage, in some instances, of the arrears of one or two years, would produce between eight and nine per cent.

Next to the _Tiers Consolide_, _Rachats de Rente_ are particularly worthy of attention; indeed, this debt is of so secure and sacred a nature, that the government has appropriated a considerable part of it to the special purpose and service of the hospitals and schools; two species of inst.i.tutions which ought ever to be sheltered from all vicissitudes, and which, whatever may be the form or character of the government, must be supported and respected.

ACTIONS DE LA BANQUE DE FRANCE.

These are shares in the National Bank of France, which are limited to the number of thirty thousand, and were originally worth one thousand francs each; they therefore form a capital of 30,000,000 francs, or 1,250,000 sterling, and afford as follows:

1. A dividend which at present, and since the foundation, has averaged from eight to ten per cent, arising from the profits on discount.

2. A profit of from four to five per cent more on the discount of paper, which every holder of an _action_ or share effects at the Bank, at the rate of one-half per cent per month, or six per cent for the whole year.

The present price of an _action_ is about twelve hundred francs, which may be considered as producing:

80 francs; dividend paid by the Bank on each share.

30 francs; certain profits according to the present discount of bills.

110 francs; per share 10-10/11 per cent.

_Actions de la Banque de France_, though subject, in common with all stocks, to the influence of the government, are, however, far more independent of it than any other, and are the more secure, as the National Bank is not only composed of all the first bankers, but also supported by the princ.i.p.al merchants in the country. This investment is at present very beneficial, and certainly promises great eventual advantages. The dividends are paid in two half-yearly instalments.

ACTIONS DE LA CAISSE DE COMMERCE, ET ACTIONS DU COMPTOIR COMMERCIAL.

The _Caisse de Commerce_ and the _Comptoir Commercial_ are two establishments on the same plan, and affording, as nearly as possible, the same advantages as the _Banque de France_: the only difference is as follows:

1. These last two are, as far as any commercial establishment can be, independent of the government, and are more so than the _Banque de France_, as the _actions_ or shares are not considered as being a public fund.

2. The _Actions de la Caisse de Commerce_ limited in number to two thousand four hundred, originally cost 5000 francs, and are now worth 6000. The holder of each _action_ moreover, signs circulating notes to the amount of five thousand francs, which form the paper currency of the Bank, and for the payment of which the said holder would be responsible, were the Bank to stop payment.

3. The _Actions du Comptoir Commercial_ are still issued by the administrators of the establishment. The number of _actions_ is not as yet limited: the price of each _action_ is fifteen hundred francs (_circa_ 60 sterling), and the plan and advantages are almost entirely similar to those of the two last-mentioned inst.i.tutions.

The _Banque de France_ the _Caisse de Commerce_, and the _Comptoir Commercial_, discount three times a week. The first, the paper of the banking-houses and the princ.i.p.al commercial houses holding bank-stock; the second, the paper of the wholesale merchants of every cla.s.s; and the third, the paper of retailers of all descriptions; and in a circulation which amounts to 100 millions of francs (_circa_ 4 millions sterling) per month, there have not, it is said, been seen, in the course of the last month, protests to the amount of 20,000 francs.

BONS DE L'AN VII ET DE L'AN VIII.

Is a denomination applied to paper, issued for the purpose of paying the dividend of the debt during the seventh and eighth years of the Republic.

These _Bons_ are no further deserving of notice than as they still form a part of the floating debt, and are an article of the supposed liquidation at the conclusion of the present summary. It is therefore unnecessary to say more of them.

ARReRAGES DES ANNeES V ET VI.

These are the arrears due to such holders of stock as, during the fifth and sixth years of the Republic, had not their dividend paid in _Bons de trois Quarts_ and _Quart Numeraire_, mentioned in Art. IV and VI of this sketch. I also notice them as forming an essential part of the above-mentioned supposed liquidation, at the end of the sketch, and shall only add that it is the general opinion that they will be funded.

To the preceding princ.i.p.al investments and claims on the government, might be added the following:

_Coupes de Bois.

Cedules Hypothecaires.

Rescriptions de Domaines Nationaux.

Actions de la Caisse des Rentiers.

Actions des Indes.

Bons de Moines et Religieuses.

Obligations de Receveur._

However, they are almost entirely unworthy of attention, and afford but occasionally openings for speculation. Of the last, (_Obligations de Receveur_) it may be necessary to observe that they are monthy acceptances issued by the Receivers-General of all the departments, which the government has given to the five bankers, charged with supplying money for the current service, as security for their advances, and which are commonly discounted at from 7/8 to one per cent per month.

I shall terminate this concise, though accurate sketch of the French funds by a general statement of the National Debt, and by an account of an annuity supposed to be held by a foreigner before the revolution, and which, to become _Tiers Consolide_, must undergo the regular process of reduction and liquidation.

_National Debt_.

_Francs._

Consolidated Stock (_Tiers Consolide_) 38,750,000 Floating Debt, to be consolidated, about 23,000,000 Life Annuities 20,000,000 Ecclesiastical, Military, and other Pensions 19,000,000 ----------- 100,750,000

The value of a _franc_ is something more than 10_d_. English money: according to which calculation, the National Debt of France is in round numbers no more than 4,000,000

Supposed liquidation of an annuity of 100. sterling, or 2,400 _livres tournois_ held by a foreigner before the war and yet unliquidated.

_Francs._ Original Annuity 2,400 _Tiers Consolide Bons de deux Tiers_ 2,400

The actual value of the whole, including the arreared dividends up to the present day is as follows:

_Francs._ _Tiers Consolide_ as above, 800 francs sold at 60 francs 9,600 _Bons de deux Tiers_, ditto 1600 francs sold at 3 francs 48

Arrears from the first year of the Republic to the fifth ditto (23d of September, 1792 to the 23d of September, 1797) are to be paid in a.s.signats, and are of no value.

Arrears of the fifth and sixth years supposed to be liquidated so as to afford 25 per cent of their nominal value, about 600 Arrears in _Bons_ for the year VII, valued at 50 per cent loss 400 Arrears of the year VIII, due in _Bons_, valued at 25 per cent loss 600 Arrears of the year IX, due in specie 600 Arrears of the year X, of which three months are nearly elapsed 200 ----- Total of the princ.i.p.al and interest of an original annuity of 2,400 livres, reduced (according to law) to 800 12,248 Or in sterling, _circa_ 500 ------

I had almost forgot that you have asked me more than once for an explanation of the exact value of a modern franc. The following you may depend on as correct.

The _unite monetaire_ is a piece of silver of the weight of five _grammes_, containing a tenth of alloy and nine tenths of pure silver. It is called _Franc_, and is subdivided into _Decimes_, and _Centimes_: its value is to that of the old _livre tournois_ in the proportion of 81 to 80.

_Value in livres tournois._ liv. sous. deniers.

Franc 1 0 3 Decime 2 0.3 Centime 2.43

LETTER XXIX.

_Paris, December 7, 1801_.